Pakistan’s trade deficit widened to $9.4 billion in the first quarter of the fiscal year 2025-26, driven primarily by a slowdown in the textile sector and a significant decline in rice exports.
According to data released by the Pakistan Bureau of Statistics (PBS), exports from July to September fell by 3.88%, dropping to $7.6 billion from $7.9 billion during the same period last year. Meanwhile, imports surged by 13.9%, reaching $17 billion compared to $14.95 billion in the corresponding quarter of the previous year.
Food exports plunged by 31.42% in Q1, while rice exports dropped by 42%, including 43.64% decline in Basmati rice and 41.10% drop in other varieties (Irri-6 and Irri-9).
Vegetable and tobacco exports also fell sharply by 41% and 48%, respectively, largely due to heavy rains and flooding. Sugar exports were completely halted during this period. Moreover, exports of oil-seeds, nuts, and dry fruits declined by 68%.
Despite the overall downturn, there were positive trends in some areas such as seafood exports rose by 28%, fruit exports increased by 17%, while textile exports grew modestly by 5.63% overall.
However, raw cotton exports recorded zero activity during the quarter. Carpet and leather exports declined by 13% and 4%, respectively. In contrast, cement exports jumped by 52%, and sports goods (including footballs and gloves) rose by 19%.
On the import side, there were significant increases in petroleum products, palm oil, mobile phones and iron and steel scrap. Meanwhile, imports of liquefied natural gas (LNG) declined by 33%.
